I don't get it, how exactly does Rovio make money?

I have Angry birds, Angry birds Seasons and Angry birds Rio on my phone but I didn't pay a single penny for them as they were free in the android marketplace. Do they get all their revenue from advertisements in game or is there something else I am missing altogether?

Well, the Iphone market is huge and paid. Not only that, I believe they have some in-game purchases (like the mighty-eagle) even in the android market.

And there's the windows phone version too, which is also paid.

And lot's and lots of merchandise - plushies, sandals, notebooks, you name it!

Satoru Iwata should come kowtowing, hoping that they bestow their grace upon him.

Aren't they coming out with Angry Birds Space or something? It looks pretty cool... by the short teaser they gave us. And YES! I WANT MY ANGRY BIRDS 3DS. >.